Call for flat tax system and unemployment insurance for SMEs

Santo Domingo.- The Association of Wholesalers in Supplies of Santo Domingo (Amaprosado) has urged the Dominican government to adopt measures aimed at strengthening the commercial sector and supply chain. Key proposals include implementing a unified tax system for micro and small businesses, introducing unemployment insurance, and ensuring the sector’s representation in the Economic and Social Council (CES). Andrés Cosma, Amaprosado’s president, emphasized these recommendations during the organization’s 63rd-anniversary celebration.

Cosma outlined the benefits of a single tax scheme for small businesses, suggesting it would streamline tax compliance by consolidating tax obligations and social security contributions into one payment. He noted that such a system, successfully implemented in countries like Argentina, Uruguay, and Brazil, has helped formalize micro and small enterprises, improved tax revenue, and fostered inclusive economic growth. He advocated for this strategy as a tool to reduce administrative burdens and encourage entrepreneurship in the Dominican Republic.

Additionally, Cosma proposed unemployment insurance as a safeguard for workers during periods of job instability. Drawing on successful examples from Chile, Colombia, and Costa Rica, he explained that a tripartite funding model involving the government, employers, and employees could finance this system without undermining existing worker rights. Cosma argued that such initiatives would contribute to a more robust, inclusive labor market while supporting economic resilience and development.